The National Association of Realtors (NAR) settlement — finalized in late 2024 — shook the real estate industry. While much of the discussion has focused on homebuyers and sellers, the list of industry changes also indirectly affects renters and property managers. If you're involved in Miami's condo market, being familiar with the latest updates related to the NAR settlement will help you stay ahead of industry changes in 2025.
Key Changes and Implications
Due to the NAR settlement, you can expect the following adjustments.
1. Increased Transparency and Negotiability
Increased transparency in how commissions and fees are structured is one of the most significant outcomes of the NAR settlement. Buyers and sellers now have more power over negotiating costs and understanding exactly what they are paying for. Here’s what’s changing:
Required written agreements: Buyers must sign written contracts with their agents before touring properties. These agreements detail the agent’s services and fees, ensuring buyers know what they’re committing to upfront. If you’re a condo manager whose building attracts high-net-worth international buyers, you can expect more upfront paperwork. This also means slower transactions as foreign investors unfamiliar with U.S. real estate norms may find written agreements confusing.
Fully negotiable commissions: Real estate commissions have always been negotiable, but the settlement reinforces this point. Buyers and sellers now have more room to negotiate fees. This is amazing news for owners and developers, as you can now bypass agents and offer buyer incentives.
2. Changes to MLS Listings
For decades, multiple listing service (MLS) platforms have been the go-to resource for home listings. However, the settlement has reshaped how commissions are displayed.
No more buyer agent compensation on MLS: Commissions are often incorporated into a home’s final price. They represent about 5.46% of the total and are split evenly between both parties' agents. High commissions previously led to steering — the act of favoring listings with higher commissions and hiding away those with lesser ones. However, the end of the standard rate commission meant agents no longer had to prioritize condos with higher commissions, leading to more balanced exposure.
Standard seller-offered concessions: While commission offers are no longer on MLS, sellers can still provide concessions such as closing cost assistance. This maintains an avenue for negotiation while keeping the process more transparent. However, the lack of MLS commission offers makes deals more complex as buyers and sellers may negotiate compensation off-platform.
3. Impacted Consumers
The new settlement has consumers in mind more than anyone else. Buyers can expect greater transparency so they can make more informed purchasing decisions. They get a clear picture of what service their agents are actually providing them and how much they need to pay. This shakeup is expected to encourage more competitive pricing across the industry. However, it also means buyers now have to ask agents about their compensation structures and what services are covered.
Those who have already purchased a home in recent years may even get a chunk of the $418 million that the NAR has agreed to pay to people who paid inflated real estate commissions when they sold their homes. However, eligibility depends on location.
While the NAR settlement does not directly impact rental transactions, its effects on the broader market could influence renters in several ways. Consumers get to experience greater market transparency, and fee disclosures in sales transactions can translate to similar openness in the rental sector. Some real estate professionals who previously focused on sales may shift to rental markets, potentially improving service quality for renters.
The NAR Settlement Timeline — What to Expect in 2025
The NAR settlement is currently being implemented in phases. Here are the most significant events so far.
August 17, 2024: The new rules took effect, including changes to MLS listings and written agreements.
November 26, 2024: A hearing was held where the judge approved a $418 million nationwide settlement to resolve claims regarding inflated commission.
May 9, 2025: Home sellers who qualify for settlement-related claims must file by this date.
What the NAR Settlement Means for You
Industry professionals — including brokers and property managers — are adapting to the changes and updating their practices accordingly. For condo property managers, these changes could mean more direct negotiations with buyers, shifts in agent behavior, and new expectations from renters. Now is the time to review your agent partnerships, understand how commission adjustments could affect pricing strategies, and prepare for a more transparent but competitive market.
Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like the National Association of Realtors and Realty Executives.